Bovis has agreed to buy the housing arm of Galliford Try, currently branded as Linden Homes and Galliford Try Partnerships, for a little over £1billion.
The acquisition will be funded by a combination of shares and cash giving existing GT shareholders a stake in the newly formed business.
The synergies for Bovis are threefold. Firstly, the new business will deliver around 12,000 new homes a year which puts it straight into the top 5 house builders in the UK. Secondly, it take Bovis firmly into the partnerships market offering the business greater diversity. Finally, the established locations of GT Partnerships in the north of England give Bovis fuller geographical coverage.
In his statement, Bovis CEO, Greg Fitzgerald, said: “I am very focused on successfully integrating these businesses in early 2020 with strong management across all business areas, and on delivering the clear benefits from the combination including at least £35 million of synergies as quickly as possible.”